Employment policies for reducing poverty and creating better quality - PowerPoint PPT Presentation

Employment policies for reducing poverty and creating better quality jobs Bangkok, 16 June 2016 Makiko Matsumoto Employment Specialist Decent Work Technical Support Team for East and South-East Asia and the Pacific ILO-Bangkok

OVERVIEW  Labour market challenges  A focus on youth  Why is there a need for employment policy?  Employment policy process

LABOUR MARKET CHALLENGES

Achievement in reducing extreme poverty (UNDP)  47% in 1990 to 14% in 2015 (estimate, UNDP)  Number of extreme poor more than halved: 1.9 billion in 1990 to 0.8 billion in 2015  Achievements not uniform across regions and countries  South Asia and sub-Saharan Africa, challenges remain  Achievements not uniform across women and men  In majority of developing countries, women are more likely than men to live in poor households

Working poor in extreme poverty has reduced, though still very high in some countries/regions Share of extreme poor (<US$1.90, PPP) in total  In 3 regions, less than 10% employment (%), 2010s 80.0 of employed people are in extreme poverty 70.0 60.0  Progress in Asia and the Africa: 40.3% 50.0 Pacific and in Africa, but 40.0 considerable differences 30.0 across countries Asia & the Pacific: 16.5%  More than 50% chances of 20.0 Latin America: Europe & 6.6% being extremely poor when in Central Asia: 10.0 Arab States: 4.4% 1.4% employment (2 in AP, 6 in 0.0 Africa) TUN ETH GIN NER TGO SLE GNB COD BRA MEX SLV ECU PER HTI THA MNG VNM PAK NPL PNG SRB MNE BLR ARM Note: Data for the latest available year in 2010s are presented. Source: ILO World Employment and Social outlook, Trends 2016, table 17B

... a lot of people still remain vulnerable to poverty… Share of moderate and near poor (US$1.90-US$5,  Share of moderate and near PPP) in total employment (%), 2010s poor is still quite large 80.0 70.0  Susceptible to set backs in 60.0 Europe & Central times of economic, natural or Arab States: Asia: 16.0% 48.8% 50.0 political shocks Asia & the Africa: 39.5% Pacific: 35.3% 40.0  Combined with incidence of 30.0 Latin America: extreme poverty, more than 4 16.2% 20.0 in 5 employed persons are 10.0 vulnerable to poverty in 25 of the 72 countries presented 0.0 MUS COD ZAF LSO BEN TZA NER GIN CHL BRA PER COL SLV HND IRN MNG BTN LAO PNG NPL UKR MNE RUS GEO Note: Data for the latest available year in 2010s are presented. Source: ILO World Employment and Social outlook, Trends 2016, table 17B

Higher incidence of poverty is also associated with higher income inequality Income Gini index and incidence of poverty  Some positive association (national poverty line), 2010s between higher incidence 70.0 of poverty and income 60.0 inequality 50.0 40.0 Gini index  Reducing poverty may also contribute to reduction in 30.0 inequality 20.0 10.0 0.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Poverty head-count (% population, national poverty line) Note: Data for the latest available year in 2010s are presented. Source: ILO World Employment and Social outlook, Trends 2016, table 17A

Young people are more likely to be without a job  Youth, world  Adult, world 14.0 140 14.0 140 12.0 120 12.0 125.8 120 124.4 124.2 122.4 120.8 120.0 119.8 109.8 109.4 108.5 100 108.1 10.0 10.0 100 104.1 104.1 104.5 103.3 103.2 99.6 97.9 94.6 90.6 88.1 87.6 8.0 80 8.0 80 81.2 79.7 75.8 6.0 60 6.0 60 79.1 78.1 78.3 78.1 76.8 76.9 4.0 75.9 40 74.6 75.1 74.1 73.7 74.5 74.0 73.8 74.1 4.0 40 72.5 71.7 72.1 71.3 71.3 70.3 70.1 70.2 67.5 67.0 2.0 20 2.0 20 - - - - Youth unemployed (million) Youth UER (%) Adult unemployed (million) Adult UER (%)

… reflecting difficulties in entering the labour market…  Youth, Asia Pacific  Adult, Asia Pacific 12.0 55 12.0 55 50 50 51.7 50.2 49.1 48.6 48.3 10.0 10.0 45 45 46.6 46.3 46.1 46.0 45.4 44.9 44.5 44.2 40 42.2 42.2 40 41.5 41.1 8.0 8.0 37.9 35 35 36.4 33.5 32.6 30 30 31.4 6.0 6.0 28.7 28.4 25 25 26.9 41.2 39.9 39.8 39.9 39.7 39.6 38.1 20 20 38.1 37.8 37.6 37.6 37.6 36.3 36.2 36.3 35.9 35.3 35.3 35.5 35.5 4.0 35.0 34.9 4.0 34.7 34.3 33.0 15 15 10 10 2.0 2.0 5 5 - - - - Youth unemployed (million) Youth UER (%) Adult unemployed (million) Adult UER (%)

Global trends for youth employment: The school-to-work transition is not long for a first job for most youth, but it takes on average 19 months to complete the transition to a stable or satisfactory job .

… and quality of employment remains low…  World, % vulnerable  Asia Pacific, % vulnerable 80.0 80.0 70.0 70.0 60.0 60.0 50.0 50.0 40.0 40.0 30.0 30.0 20.0 20.0 10.0 10.0 - - 1998 2000 2002 2004 2006 2008 2010 2012 2014 1998 2000 2002 2004 2006 2008 2010 2012 2014 Male Female Male Female

… particularly for women in low income countries…  World, low income, %  Asia Pacific, low income, vulnerable % vulnerable 90.0 90.0 80.0 80.0 70.0 70.0 60.0 60.0 50.0 50.0 40.0 40.0 30.0 30.0 20.0 20.0 10.0 10.0 - - 1998 2000 2002 2004 2006 2008 2010 2012 2014 1998 2000 2002 2004 2006 2008 2010 2012 2014 Male Female Male Female

… and continued engagement in primary or subsistence activities… Asia and the Pacific: Share of   Households continue to engage in less productive primary or employment in agriculture (%), 1991- subsistence activities 2020 80.0  Particularly in low-income countries 70.0 60.0  Household income diversification strategies 50.0  Rural-urban migration by some 40.0 members 30.0  Some connections established 20.0 between rural and urban, 10.0 agricultural and non-agricultural labour markets 0.0 199119931995199719992001200320052007200920112013201520172019  Linkages could be stronger Low income Lower middle income Upper middle income High income Source: ILO: KILM 9 th edition, table R4.

NEED FOR AN EMPLOYMENT POLICY

Need for an employment policy  Decent work outcomes are influenced by many factors Demand: • Macroeconomic policy • Investment: public + private • Trade Supply: • Productivity Matching: • Demographics • Consumption • Child care • Wages • Household needs • Employment services • Education/training • Labour market • Migration/geographical information mobility • Skills • Reservation wages Decent work

Need for an employment policy  .. and thus by many policies… Macroecono mic Policy Social Migration Protection Policy Policy A policy LED Sectoral Policy coordination framework will be necessary, to pursue Education & Enterprise Skill employment Development Developmen Policy Employment Policy objectives and t Policy targets Environment Informal policy Economy Policy -> An employment policy Industrial Wage Policy relations Policy for Policy Youth and Other Gender Policy Targeted Groups

Need for an employment policy  How central are employment and DW objectives and targets? Employ ment? National Employment development ? framework and targets – employment ?

Employment promotion frameworks  Integrating employment objectives in national development plans  Philippine Development Plan 2011-16  National employment policies  Cambodia 2015-2025  Fiji  Employment (Promotion) Laws  China  Viet Nam  G20 Employment Plans

Employment policy framework for poverty reduction needs to go beyond a narrow set of labour market policies and institutions

Having an employment policy framework  Explicitly commits the government to improving employment outcomes (and poverty, in turn)  Provides platform for stakeholder assessment of policy measures that work  Commitments to regularly collect statistics for national M&E purposes  Improves the political economy context in favour of decent employment objectives

The Employment Policy Convention, 1964 (No. 122) ratified by 110 member States of the ILO. As of 2014, approximately 60 countries developing, reviewing or implementing national employment policies with ILO support.

An enabling condition…  Macroeconomic policy framework that is connected to the core concerns of socio-economic development  Identifying and pulling together existing policy frameworks  E.G.: Skills and trade/sectoral development  Continuous investment in human resources and capacity development  Investment in information, management and analyses  E.G.: LMIS

Employment policy – general content  Demand – increase formal employment opportunities  Public works programmes  Investment and sectoral development policies  Active labour market policies that induce job placements or job retention  Enterprise development and support to SMEs (finance, market, business support)

Employment policy – general content  Supply – timing and likelihood of participating in the labour market  Education and training - employability  Measures that affect participation rates (e.g. care services, provision of protection, retirement age)  Demographics  Migration  Matching  Public employment services  Private employment agencies  Labour market information  Measures that facilitate mobility – geographical and occupational